Download Ensuring Leadership in Regulatory Compliance and Risk

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Medical Affairs – The Next
S-Curve in Pharmaceuticals
2004 Pharma, Biotech
and Device Colloquium
Michael Conway ([email protected])
David Quigley ([email protected])
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OVERVIEW
Medical Affairs is increasingly the third major source of
differentiation, after R&D and Commercialization, to
supplement traditional marketing activities
Medical Affairs creates value and competitive advantage
by engaging providers and managed care, and expanding
development
However, companies are finding it challenging to scale up
Medical Affairs, while maintaining internal alignment and a
coordinated interface to physicians
To build a successful Medical Affairs capability, companies
must ensure tight collaboration with R&D and Sales &
Marketing, build in flawless execution, and attract and
keep the right talent
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MEDICAL AFFAIRS IS INCREASINGLY THE THIRD
MAJOR COMMERCIAL DRIVER FOR PHARMACOS
New external
pressures
Limits of traditional
approaches
New compliance
guidelines are limiting
marketing degrees of
freedom
R&D fully leveraged
with new products and
label expansion
Increasing demand for
outcomes data for payors,
and drug comparisons for
physicians
Medical
Affairs
Diminishing returns
from incremental
expansion of sales and
marketing tactics
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WIDE RANGE OF APPROACHES TO U.S. MEDICAL
AFFAIRS
From . . .
To . . .
Global R&D
Dual report to Global
and US
Interaction
with brand
teams
Support group
Fully integrated with
brand teams
Interaction
with
global
Light touch global org
ensures consistency
Fully integrated with
Global Marketing
Budget
No separate MA
budget
Dedicated budget for all
activities
Focus
Tactical support to
clinical & commercial
Thought partner to
brand teams &
development group
Reporting
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BUT SOME KEY TRENDS EMERGING
Reporting
Increasing separation from sales and
marketing
Interaction
with brand
teams
Most struggle to develop integrated solutions
and specialization
Interaction
with
global
Stronger linkages with enhanced global
organizations
Budget
Increasing MA control over information
dissemination budgets
Focus
Increasingly strategic
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WIDE RANGE OF SCOPE OF MEDICAL AFFAIRS
FUNCTIONS
Company A
Company B
Company C
Company D
Company E
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MEDICAL AFFAIRS CREATES COMPETITIVE
ADVANTAGE ON THREE DIMENSIONS
Drive appropriate medical use: Educating physicians
based on all available data
Early and comprehensive engagement of providers:
• Allowing early consideration by thought leaders
• Engaging a comprehensive set of stakeholders
–Peer to peer discussions
–Involvement in clinical trials
–Medical education
Building a differentiated product profile : Enhancing value
of a drug to patients, payors, and physicians, e.g.,
–Product attributes (clinical, cost, convenience, comfort)
–Efficacy in sub-populations
–Combinations
–Direct comparisons
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FOR THESE REASONS SIGNIFICANT GROWTH IS
EXPECTED IN MEDICAL AFFAIRS
9,900
1,200
Drug Information
3,600
Medical Service Liaison
5,500
600
1,200
500
200
3,000
2001 FTEs
500
600
4,000
Marketing/Sales/Reg Affairs
Economists/Outcome
Researchers
Scientists
2020 FTEs
Source: Professionally Determined Need for Pharmacy Services in 2020 Conference
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COMMON CHALLENGES IN SCALING UP
MEDICAL AFFAIRS
1. Consistently interpreting and complying with
guidelines
2. Maintaining alignment between Medical
Affairs, Commercial and R&D objectives
3. Ensuring interactions with providers are
consistent with objectives and with sales and
R&D activities
4. Attracting and retaining talented scientists
and technical people, particularly mid-level
leaders
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POSSIBLE WINNING APPROACH FOR
SCALING UP MEDICAL AFFAIRS
1. Balancing the organization tightly around
posture
2. Building alignment through “a shared vision for
the brand” that is developed collaboratively with
Medical Affairs, R&D, and Sales & Marketing
3. Building processes to drive alignment of
activities at a local market level and consistency
with objectives
4. Creating a career proposition and trajectory, and
ensuring salary commensurate with Commercial
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TOUGH QUESTIONS
• Are you doing enough in Medical Affairs?
• How good is the work that is being done?
• What stops you doing more and doing it
better?
• How excited are your people?
• How well do you work with R&D and
Marketing?
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Appendix
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REACHING SATURATION POINT ON TRADITIONAL
SALES AND MARKETING
Doctor time allocation
Percent
100% = ~14 hours per day
2 Time with reps
Other
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Administrative
tasks
18
58
Patient
care
Prevalence of policies that restrict
representative access
Percent of physicians
80% doctors
Restricts number
of reps per day
Restricts times or
days reps can visit
Restricts details to
appts./lunch only
estimated to have
restrictive policies
by end of 2002
8
23
Have policy
45
66
“No more than three reps will be seen in a day, and if the doctor is busy, the
representative must leave samples with the front desk while the staff obtains the
physician’s signature. This policy became necessary because there were 10-15
reps calling on the office and interfering with our ability to see patients.”
– PCP Office Manager
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